Shares of Cornerstone OnDemand Inc. fell Friday morning after the company reported a larger first quarter net loss that was a bit worse than expected.

The Santa Monica developer of management software for businesses late Thursday reported a net loss of $52.8 million (-$3.65 per share), compared with a loss of $4.58 million (-54 cents) a year earlier. The company, which went public in March, blamed the larger loss on a $42.6 million change in the fair value of its preferred stock warrants, as well as higher expenses as the company expands operations.

Revenue rose 63 percent to more than $15.7 million. Adjusted for one-time items, the net loss was $3.7 million (-26 cents), a 54 percent greater loss than a year earlier. Analysts surveyed by Thomson Reuters on averaged expected the company to report an adjusted per-share loss of 24 cents on revenue of $14.2 million.

“We feel very positive about the momentum of the business and our strong start to the year,” Chief Executive Adam Miller said in a statement. “Cornerstone ended the first quarter with more than 560 clients and over 5.2 million users, representing approximately 80 percent year-over-year growth of our client base.”

Shares were down $1.32, or 6 percent, to $20.02 in midday trading on the Nasdaq.